Amended IN Assembly March 19, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1824Introduced by Assembly Member ValenciaJanuary 11, 2024An act relating to artificial intelligence. An act to amend Section 1798.120 of the Civil Code, relating to privacy.LEGISLATIVE COUNSEL'S DIGESTAB 1824, as amended, Valencia. Artificial intelligence: disclosure. California Consumer Privacy Act of 2018: opt-out right: mergers.The California Consumer Privacy Act of 2018 (CCPA) grants a consumer various rights with respect to personal information that is collected or sold by a business, as defined, including the right to direct a business that sells or shares personal information about the consumer to third parties not to sell or share the consumers personal information, as specified. The California Privacy Rights Act of 2020, approved by the voters as Proposition 24 at the November 3, 2020, statewide general election, amended, added to, and reenacted the CCPA.This bill would require a business to which another business transfers the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the transferee assumes control of all or part of the transferor to comply with a consumers opt-out direction to the transferor.This bill would declare that its provisions further the purposes and intent of the California Privacy Rights Act of 2020.Existing law requires the Department of Technology to conduct, in coordination with other interagency bodies as it deems appropriate, a comprehensive inventory of all high-risk automated decision systems that have been proposed for use, development, or procurement by, or are being used, developed, or procured by, any state agency. Existing law defines automated decision system as a computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues simplified output, including a score, classification, or recommendation, that is used to assist or replace human discretionary decisionmaking and materially impacts natural persons.This bill would state the intent of the Legislature to enact legislation that would create a disclosure requirement for content generated through artificial intelligence.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1798.120 of the Civil Code is amended to read:1798.120. Consumers Right to Opt Out of Sale or Sharing of Personal Information(a) (1) A consumer shall have the right, at any time, to direct a business that sells or shares personal information about the consumer to third parties not to sell or share the consumers personal information. This right may be referred to as the right to opt-out of sale or sharing.(2) A business to which another business transfers the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the transferee assumes control of all of, or part of, the transferor shall comply with a consumers direction to the transferor made pursuant to this subdivision.(b) A business that sells consumers personal information to, or shares it with, third parties shall provide notice to consumers, pursuant to subdivision (a) of Section 1798.135, that this information may be sold or shared and that consumers have the right to opt-out opt out of the sale or sharing of their personal information.(c) Notwithstanding subdivision (a), a business shall not sell or share the personal information of consumers if the business has actual knowledge that the consumer is less than 16 years of age, unless the consumer, in the case of consumers at least 13 years of age and less than 16 years of age, or the consumers parent or guardian, in the case of consumers who are less than 13 years of age, has affirmatively authorized the sale or sharing of the consumers personal information. A business that willfully disregards the consumers age shall be deemed to have had actual knowledge of the consumers age.(d) A business that has received direction from a consumer not to sell or share the consumers personal information or, in the case of a minor consumers personal information has not received consent to sell or share the minor consumers personal information, shall be prohibited, pursuant to paragraph (4) of subdivision (c) of Section 1798.135, from selling or sharing the consumers personal information after its receipt of the consumers direction, unless the consumer subsequently provides consent, for the sale or sharing of the consumers personal information.SEC. 2. The Legislature finds and declares that this act furthers the purposes and intent of the California Privacy Rights Act of 2020.SECTION 1.It is the intent of the Legislature to enact legislation that would create a disclosure requirement for content generated through artificial intelligence. Amended IN Assembly March 19, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1824Introduced by Assembly Member ValenciaJanuary 11, 2024An act relating to artificial intelligence. An act to amend Section 1798.120 of the Civil Code, relating to privacy.LEGISLATIVE COUNSEL'S DIGESTAB 1824, as amended, Valencia. Artificial intelligence: disclosure. California Consumer Privacy Act of 2018: opt-out right: mergers.The California Consumer Privacy Act of 2018 (CCPA) grants a consumer various rights with respect to personal information that is collected or sold by a business, as defined, including the right to direct a business that sells or shares personal information about the consumer to third parties not to sell or share the consumers personal information, as specified. The California Privacy Rights Act of 2020, approved by the voters as Proposition 24 at the November 3, 2020, statewide general election, amended, added to, and reenacted the CCPA.This bill would require a business to which another business transfers the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the transferee assumes control of all or part of the transferor to comply with a consumers opt-out direction to the transferor.This bill would declare that its provisions further the purposes and intent of the California Privacy Rights Act of 2020.Existing law requires the Department of Technology to conduct, in coordination with other interagency bodies as it deems appropriate, a comprehensive inventory of all high-risk automated decision systems that have been proposed for use, development, or procurement by, or are being used, developed, or procured by, any state agency. Existing law defines automated decision system as a computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues simplified output, including a score, classification, or recommendation, that is used to assist or replace human discretionary decisionmaking and materially impacts natural persons.This bill would state the intent of the Legislature to enact legislation that would create a disclosure requirement for content generated through artificial intelligence.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Amended IN Assembly March 19, 2024 Amended IN Assembly March 19, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1824 Introduced by Assembly Member ValenciaJanuary 11, 2024 Introduced by Assembly Member Valencia January 11, 2024 An act relating to artificial intelligence. An act to amend Section 1798.120 of the Civil Code, relating to privacy. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST AB 1824, as amended, Valencia. Artificial intelligence: disclosure. California Consumer Privacy Act of 2018: opt-out right: mergers. The California Consumer Privacy Act of 2018 (CCPA) grants a consumer various rights with respect to personal information that is collected or sold by a business, as defined, including the right to direct a business that sells or shares personal information about the consumer to third parties not to sell or share the consumers personal information, as specified. The California Privacy Rights Act of 2020, approved by the voters as Proposition 24 at the November 3, 2020, statewide general election, amended, added to, and reenacted the CCPA.This bill would require a business to which another business transfers the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the transferee assumes control of all or part of the transferor to comply with a consumers opt-out direction to the transferor.This bill would declare that its provisions further the purposes and intent of the California Privacy Rights Act of 2020.Existing law requires the Department of Technology to conduct, in coordination with other interagency bodies as it deems appropriate, a comprehensive inventory of all high-risk automated decision systems that have been proposed for use, development, or procurement by, or are being used, developed, or procured by, any state agency. Existing law defines automated decision system as a computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues simplified output, including a score, classification, or recommendation, that is used to assist or replace human discretionary decisionmaking and materially impacts natural persons.This bill would state the intent of the Legislature to enact legislation that would create a disclosure requirement for content generated through artificial intelligence. The California Consumer Privacy Act of 2018 (CCPA) grants a consumer various rights with respect to personal information that is collected or sold by a business, as defined, including the right to direct a business that sells or shares personal information about the consumer to third parties not to sell or share the consumers personal information, as specified. The California Privacy Rights Act of 2020, approved by the voters as Proposition 24 at the November 3, 2020, statewide general election, amended, added to, and reenacted the CCPA. This bill would require a business to which another business transfers the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the transferee assumes control of all or part of the transferor to comply with a consumers opt-out direction to the transferor. This bill would declare that its provisions further the purposes and intent of the California Privacy Rights Act of 2020. Existing law requires the Department of Technology to conduct, in coordination with other interagency bodies as it deems appropriate, a comprehensive inventory of all high-risk automated decision systems that have been proposed for use, development, or procurement by, or are being used, developed, or procured by, any state agency. Existing law defines automated decision system as a computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues simplified output, including a score, classification, or recommendation, that is used to assist or replace human discretionary decisionmaking and materially impacts natural persons. This bill would state the intent of the Legislature to enact legislation that would create a disclosure requirement for content generated through artificial intelligence. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. Section 1798.120 of the Civil Code is amended to read:1798.120. Consumers Right to Opt Out of Sale or Sharing of Personal Information(a) (1) A consumer shall have the right, at any time, to direct a business that sells or shares personal information about the consumer to third parties not to sell or share the consumers personal information. This right may be referred to as the right to opt-out of sale or sharing.(2) A business to which another business transfers the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the transferee assumes control of all of, or part of, the transferor shall comply with a consumers direction to the transferor made pursuant to this subdivision.(b) A business that sells consumers personal information to, or shares it with, third parties shall provide notice to consumers, pursuant to subdivision (a) of Section 1798.135, that this information may be sold or shared and that consumers have the right to opt-out opt out of the sale or sharing of their personal information.(c) Notwithstanding subdivision (a), a business shall not sell or share the personal information of consumers if the business has actual knowledge that the consumer is less than 16 years of age, unless the consumer, in the case of consumers at least 13 years of age and less than 16 years of age, or the consumers parent or guardian, in the case of consumers who are less than 13 years of age, has affirmatively authorized the sale or sharing of the consumers personal information. A business that willfully disregards the consumers age shall be deemed to have had actual knowledge of the consumers age.(d) A business that has received direction from a consumer not to sell or share the consumers personal information or, in the case of a minor consumers personal information has not received consent to sell or share the minor consumers personal information, shall be prohibited, pursuant to paragraph (4) of subdivision (c) of Section 1798.135, from selling or sharing the consumers personal information after its receipt of the consumers direction, unless the consumer subsequently provides consent, for the sale or sharing of the consumers personal information.SEC. 2. The Legislature finds and declares that this act furthers the purposes and intent of the California Privacy Rights Act of 2020.SECTION 1.It is the intent of the Legislature to enact legislation that would create a disclosure requirement for content generated through artificial intelligence. The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. Section 1798.120 of the Civil Code is amended to read:1798.120. Consumers Right to Opt Out of Sale or Sharing of Personal Information(a) (1) A consumer shall have the right, at any time, to direct a business that sells or shares personal information about the consumer to third parties not to sell or share the consumers personal information. This right may be referred to as the right to opt-out of sale or sharing.(2) A business to which another business transfers the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the transferee assumes control of all of, or part of, the transferor shall comply with a consumers direction to the transferor made pursuant to this subdivision.(b) A business that sells consumers personal information to, or shares it with, third parties shall provide notice to consumers, pursuant to subdivision (a) of Section 1798.135, that this information may be sold or shared and that consumers have the right to opt-out opt out of the sale or sharing of their personal information.(c) Notwithstanding subdivision (a), a business shall not sell or share the personal information of consumers if the business has actual knowledge that the consumer is less than 16 years of age, unless the consumer, in the case of consumers at least 13 years of age and less than 16 years of age, or the consumers parent or guardian, in the case of consumers who are less than 13 years of age, has affirmatively authorized the sale or sharing of the consumers personal information. A business that willfully disregards the consumers age shall be deemed to have had actual knowledge of the consumers age.(d) A business that has received direction from a consumer not to sell or share the consumers personal information or, in the case of a minor consumers personal information has not received consent to sell or share the minor consumers personal information, shall be prohibited, pursuant to paragraph (4) of subdivision (c) of Section 1798.135, from selling or sharing the consumers personal information after its receipt of the consumers direction, unless the consumer subsequently provides consent, for the sale or sharing of the consumers personal information. SECTION 1. Section 1798.120 of the Civil Code is amended to read: ### SECTION 1. 1798.120. Consumers Right to Opt Out of Sale or Sharing of Personal Information(a) (1) A consumer shall have the right, at any time, to direct a business that sells or shares personal information about the consumer to third parties not to sell or share the consumers personal information. This right may be referred to as the right to opt-out of sale or sharing.(2) A business to which another business transfers the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the transferee assumes control of all of, or part of, the transferor shall comply with a consumers direction to the transferor made pursuant to this subdivision.(b) A business that sells consumers personal information to, or shares it with, third parties shall provide notice to consumers, pursuant to subdivision (a) of Section 1798.135, that this information may be sold or shared and that consumers have the right to opt-out opt out of the sale or sharing of their personal information.(c) Notwithstanding subdivision (a), a business shall not sell or share the personal information of consumers if the business has actual knowledge that the consumer is less than 16 years of age, unless the consumer, in the case of consumers at least 13 years of age and less than 16 years of age, or the consumers parent or guardian, in the case of consumers who are less than 13 years of age, has affirmatively authorized the sale or sharing of the consumers personal information. A business that willfully disregards the consumers age shall be deemed to have had actual knowledge of the consumers age.(d) A business that has received direction from a consumer not to sell or share the consumers personal information or, in the case of a minor consumers personal information has not received consent to sell or share the minor consumers personal information, shall be prohibited, pursuant to paragraph (4) of subdivision (c) of Section 1798.135, from selling or sharing the consumers personal information after its receipt of the consumers direction, unless the consumer subsequently provides consent, for the sale or sharing of the consumers personal information. 1798.120. Consumers Right to Opt Out of Sale or Sharing of Personal Information(a) (1) A consumer shall have the right, at any time, to direct a business that sells or shares personal information about the consumer to third parties not to sell or share the consumers personal information. This right may be referred to as the right to opt-out of sale or sharing.(2) A business to which another business transfers the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the transferee assumes control of all of, or part of, the transferor shall comply with a consumers direction to the transferor made pursuant to this subdivision.(b) A business that sells consumers personal information to, or shares it with, third parties shall provide notice to consumers, pursuant to subdivision (a) of Section 1798.135, that this information may be sold or shared and that consumers have the right to opt-out opt out of the sale or sharing of their personal information.(c) Notwithstanding subdivision (a), a business shall not sell or share the personal information of consumers if the business has actual knowledge that the consumer is less than 16 years of age, unless the consumer, in the case of consumers at least 13 years of age and less than 16 years of age, or the consumers parent or guardian, in the case of consumers who are less than 13 years of age, has affirmatively authorized the sale or sharing of the consumers personal information. A business that willfully disregards the consumers age shall be deemed to have had actual knowledge of the consumers age.(d) A business that has received direction from a consumer not to sell or share the consumers personal information or, in the case of a minor consumers personal information has not received consent to sell or share the minor consumers personal information, shall be prohibited, pursuant to paragraph (4) of subdivision (c) of Section 1798.135, from selling or sharing the consumers personal information after its receipt of the consumers direction, unless the consumer subsequently provides consent, for the sale or sharing of the consumers personal information. 1798.120. Consumers Right to Opt Out of Sale or Sharing of Personal Information(a) (1) A consumer shall have the right, at any time, to direct a business that sells or shares personal information about the consumer to third parties not to sell or share the consumers personal information. This right may be referred to as the right to opt-out of sale or sharing.(2) A business to which another business transfers the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the transferee assumes control of all of, or part of, the transferor shall comply with a consumers direction to the transferor made pursuant to this subdivision.(b) A business that sells consumers personal information to, or shares it with, third parties shall provide notice to consumers, pursuant to subdivision (a) of Section 1798.135, that this information may be sold or shared and that consumers have the right to opt-out opt out of the sale or sharing of their personal information.(c) Notwithstanding subdivision (a), a business shall not sell or share the personal information of consumers if the business has actual knowledge that the consumer is less than 16 years of age, unless the consumer, in the case of consumers at least 13 years of age and less than 16 years of age, or the consumers parent or guardian, in the case of consumers who are less than 13 years of age, has affirmatively authorized the sale or sharing of the consumers personal information. A business that willfully disregards the consumers age shall be deemed to have had actual knowledge of the consumers age.(d) A business that has received direction from a consumer not to sell or share the consumers personal information or, in the case of a minor consumers personal information has not received consent to sell or share the minor consumers personal information, shall be prohibited, pursuant to paragraph (4) of subdivision (c) of Section 1798.135, from selling or sharing the consumers personal information after its receipt of the consumers direction, unless the consumer subsequently provides consent, for the sale or sharing of the consumers personal information. 1798.120. Consumers Right to Opt Out of Sale or Sharing of Personal Information (a) (1) A consumer shall have the right, at any time, to direct a business that sells or shares personal information about the consumer to third parties not to sell or share the consumers personal information. This right may be referred to as the right to opt-out of sale or sharing. (2) A business to which another business transfers the personal information of a consumer as an asset that is part of a merger, acquisition, bankruptcy, or other transaction in which the transferee assumes control of all of, or part of, the transferor shall comply with a consumers direction to the transferor made pursuant to this subdivision. (b) A business that sells consumers personal information to, or shares it with, third parties shall provide notice to consumers, pursuant to subdivision (a) of Section 1798.135, that this information may be sold or shared and that consumers have the right to opt-out opt out of the sale or sharing of their personal information. (c) Notwithstanding subdivision (a), a business shall not sell or share the personal information of consumers if the business has actual knowledge that the consumer is less than 16 years of age, unless the consumer, in the case of consumers at least 13 years of age and less than 16 years of age, or the consumers parent or guardian, in the case of consumers who are less than 13 years of age, has affirmatively authorized the sale or sharing of the consumers personal information. A business that willfully disregards the consumers age shall be deemed to have had actual knowledge of the consumers age. (d) A business that has received direction from a consumer not to sell or share the consumers personal information or, in the case of a minor consumers personal information has not received consent to sell or share the minor consumers personal information, shall be prohibited, pursuant to paragraph (4) of subdivision (c) of Section 1798.135, from selling or sharing the consumers personal information after its receipt of the consumers direction, unless the consumer subsequently provides consent, for the sale or sharing of the consumers personal information. SEC. 2. The Legislature finds and declares that this act furthers the purposes and intent of the California Privacy Rights Act of 2020. SEC. 2. The Legislature finds and declares that this act furthers the purposes and intent of the California Privacy Rights Act of 2020. SEC. 2. The Legislature finds and declares that this act furthers the purposes and intent of the California Privacy Rights Act of 2020. ### SEC. 2. It is the intent of the Legislature to enact legislation that would create a disclosure requirement for content generated through artificial intelligence.